Savings interest calculator
Find out how much interest you will earn in a year, how much of it is taxed, and whether an ISA is worth it.
Interest after tax, per year
£840
£70.00 a month, from £840 before tax.
- Interest you keep£840
- Tax on interest£0
Your allowance covers this. You could hold about £23,810 at this rate before paying tax.
The Personal Savings Allowance
Basic-rate taxpayers can earn £1,000 of interest a year tax-free, higher-rate taxpayers £500, and additional-rate taxpayers nothing. Interest above that is taxed at 20%, 40% or 45%.
ISAs
Interest in an ISA is always tax-free and does not use up your allowance. You can put up to £20,000 a year into ISAs. This calculator assumes your other income has used up any starting rate for savings.
Common questions
Do I have to pay tax on savings interest myself?
Banks pay interest without deducting tax. HMRC usually collects any tax due by changing your tax code, or you report it in self assessment.
What is AER?
The Annual Equivalent Rate is the yearly rate including compounding, which makes it the right figure for comparing accounts. Enter the AER above.
Does the allowance cover all my accounts?
Yes, the allowance is for your total interest across every account, not per account.